A Pathway to Industry 5.0 in the Age of Table of Contents Executive Summary Research Methodology Changing State of Enterprise IoT: Insights and Innovations IT-OT-IoT Convergence: A Foundation for 17 Looking Ahead: The Growing Role of Service Providers XECUTIVE SUMMARYE The convergence of IT, OT, and IoT is redefining industrial integration turning disconnectedsystems into intelligent, outcome-driven ecosystems. Enterprises are no longer pursuingconnectivity but seeking real-time intelligence, operational resilience, and adaptive,data-driven ecosystems. This convergence forms the foundation of Industry 5.0, where As AI continues to redefine the digital enterprise, the convergence of IT, OT, and IoTdemands renewed attention given the enterprise conversation is shifting from connectivity tointelligence, and autonomy. This study revisits the IT-OT-IoT convergence at a pivotal moment– when the traditional boundaries between operational and digital layers are dissolving faster KEY INSIGHTS IoT Has Matured from Connected to Cognitive •Over 95% of enterprises are now implementing or scaling IoT across their •The IoT Stack has evolved into a multi-layered intelligence architecture AI Is Redefining IT–OT Convergence •In the age of AI, IoT serves as the intelligence backbone of IT-OT convergence, •Agentic AI turns IT-OT integration into intelligence, automating operations andboosting efficiency by cutting downtime and increasing throughput. IT-OT-IoT and AI Convergence Enables Industry 5.0 Transition •45% of enterprises have initiated Industry 5.0 pilots; 42% are scaling multiple •Enterprises are prioritizing sustainable smart operations (68%), resilient supplychains (64%), and the adoption of digital twins (63%) to drive efficiency, agility, Security and Skills Are Critical Barriers •Enterprises are advancing toward Cognitive OT systems, blending IT, OT, and AI •Cybersecurity risks and a shortage of hybrid IT–OT talent remain key barriers, Service Providers Are Now Strategic Partners •Majority of engineering organizations and manufacturing enterprises are •Yet many engagements remain process and cost-centric, missing out onembedding human-centric and sustainability goals that form the key tenets of The takeaways and findings in this report are derived from a Nasscom Insights surveysupported by a combination of primary and secondary research. This blended methodologyprovides a comprehensive and realistic view of how engineering enterprises are adopting,and advancing IT-OT-IoT convergence. The study reflects decision-makers’ priorities, At the core of this methodology is a respondent base of 106 unique organizations, spanningleadership and practitioner roles across IT, OT, and IoT functions. This ensures the research Evidence-Backed Research Inputs Multiple Role Categories Covered CXOs, Digital Transformation Heads, Plant Operations Leaders, IT-OT Architects, IoT Program Validated Through Industry Context Insights cross-referenced with sectoral trends, convergence frameworks, and emerging Grounded in Real Decision Making Survey questions focused on responsibilities, designation bands, and influence on IT-OT-IoT The confluence of real-time Data, Edge Computing, 5G, and AI is no longer a vision forthe Internet of Things (IoT), it’s the engine driving its imminent, significant transformation.Enterprises are being propelled from simple connectivity to an era of autonomous, adaptiveand real-time intelligence, where IoT devices and systems are no longer just data collectorsbut proactive decision-makers. For industrial and manufacturing enterprises, the era ofmere connectivity is giving way to one of collaboration and intelligence, blurring traditionalboundaries and accelerating the leap from Industry 4.0 to Industry 5.0. AI integration is By unifying IT (data, analytics, cloud, AI) with OT (machines, sensors, control systems),enterprises can unlock continuous data flows from the shop floor to the top floor, turningconnected operations into intelligent, autonomous, and collaborative ecosystems. However,new vulnerabilities around data and security make things challenging for the enterprises. In SECTION 1 CHANGING STATE OF ENTERPRISE IOT:INSIGHTS AND INNOVATIONS 1.1FROM CONNECTED TO COGNITIVE: ENTERPRISE IOTMEETS AI AND NEXT-GEN CONNECTIVITY The Internet of Things (IoT) is difficult to define as the technology encompasses a vast anddiverse ecosystem of systems, devices, applications, and data. Essentially, the IoT Stack isabout two foundational components that are core to IoT, i.e., “Things” and “Connectivity”.The “Things” in IoT refers to physical objects with embedded sensors, such as motion ortemperature sensors. These may be simple standalone sensors, everyday connected devices IoT is no longer defined by the number of connected devices but has evolved into anintelligent and connected ecosystem. The IoT Stack has matured across both the physical anddata layers, with AI integration,